Ohio Bans THC Drinks, Tightens Cannabis Rules in New Sweeping Changes

Ohio’s cannabis market is entering a more restrictive phase less than two years after voters approved legalization, as new rules tighten how marijuana and hemp products can be sold, transported, and consumed.

Senate Bill 56, which took effect after failing to be overturned by referendum, revises the 2023 voter-backed framework by introducing stricter potency limits and handling requirements, as well as new criminal penalties tied to everyday use.

It also effectively bans intoxicating hemp products, including THC-infused beverages, marking a shift for a segment that had been gaining traction.

One of the more immediate impacts under the new amendments is on product formulation. THC levels for extracts are now capped at 70 percent, down from 90 percent, while the limit for plant material remains at 35 percent.

The law also bans marijuana products that resemble animals, fruit, or real and fictional characters, as well as any designs or branding likely to appeal to children.

As to distribution and consumption, cannabis products must remain in their original packaging, including after opening, and when transported in a vehicle must be stored out of reach of the driver.

Bringing marijuana into Ohio from other states is now illegal, even if purchased lawfully elsewhere, and companies are barred from shipping such products into the state.

Public consumption has been curtailed, with smoking and vaping banned in most workplaces and public spaces. While use remains permitted on private property, landlords can restrict it through lease agreements.

The most immediate disruption is likely to be felt in the hemp sector. By redefining how hemp is defined, the law effectively closes a loophole that had allowed intoxicating hemp-derived products, including beverages, to be sold outside the state’s cannabis framework.

However, the bill is currently being confronted by legal challenges. A group of companies, including beverage makers and hemp producers, has filed suit seeking to block the law, arguing that without relief they face the risk of business closures and potential criminal liability.

Meanwhile, supporters of the legislation say the tighter rules are necessary to address gaps in oversight. The Ohio Cannabis Coalition said the law provides clearer authority for enforcement and limits access to unregulated THC products.

Critics, however, argue the changes could have the opposite effect by pushing consumers outside the regulated market.

“The bottom line is that this is only going to benefit the unregulated market,” said Morgan Fox of the National Organization for the Reform of Marijuana Laws. “As people are being pushed into the unregulated market that is just adding insult to injury to them because they have less access to lab tested and quality controlled products, and whether because of financial reasons or because of simple lack of access that’s going to potentially put consumers in danger.”

Ohio’s recreational cannabis market generated more than US$836 million in sales last year.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.